Breaking Down Bank7 Corp. (BSVN) Financial Health: Key Insights for Investors

You're looking at Bank7 Corp. (BSVN) and wondering if the regional bank's strong capital ratios can outrun the margin pressure everyone's talking about. Honestly, the financials show a mixed but resilient picture as of Q3 2025. The bank closed the quarter with $1.9 billion in total assets and a net income of $10.8 million, translating to an earnings per share (EPS) of $1.13, which actually beat analyst consensus. That's a solid performance, plus their Tier 1 leverage ratio sits at a robust 12.71%, keeping them well-capitalized. Still, the street is cautious; while the current net interest margin (NIM) is a strong 5.07%, analysts project profit margins will shrink from 46.1% to 37.0% over the next three years. The core question isn't today's health, but how they manage that expected compression while still targeting high single-digit loan growth. Here's the defintely precise breakdown of the risks and opportunities baked into their balance sheet.

Revenue Analysis

You want to know if Bank7 Corp. (BSVN) is making money and where it's coming from. The direct takeaway is that their revenue is healthy and primarily driven by their core lending business, with trailing twelve-month (TTM) revenue as of Q3 2025 hitting $95.71 million. That's a solid 11.45% year-over-year growth, but you defintely need to watch the non-interest side.

For a bank, the revenue stream is simpler than a tech company: it's mostly two buckets. The first is Interest Income, which is the money they make from loans and investments. The second is Noninterest Income, which includes things like service charges, ATM fees, and gains on sales of assets. In Q3 2025, the picture was very clear: Interest Income is the engine.

Here's the quick math on the primary revenue sources for Q3 2025, showing how much each part contributes to the top line. This is a regional bank, so the focus is on commercial lending in their core markets like Oklahoma and Texas, which drives that interest income.

• Interest Income: The main source, totaling $33.7 million in Q3 2025.
• Noninterest Income: The smaller, fee-based revenue, which was $2.7 million in Q2 2025.

The total revenue for the trailing twelve months ending September 30, 2025, reached $95.71 million, marking an 11.45% increase year-over-year. That's a strong growth rate, but analysts are currently projecting a more modest full-year 2025 revenue of $90.43 million, which suggests a slowdown in the final quarter or a conservative outlook. Still, the bank's core earnings are being driven by robust loan growth, which is exactly what you want to see.

The biggest change in the revenue mix is the continued strength of the loan portfolio. Total interest income jumped from $31.8 million in Q2 2025 to $33.7 million in Q3 2025, a quarterly increase of 6.09%. But, the Noninterest Income dipped year-over-year in Q2 2025, falling from $3.2 million to $2.7 million. This means the bank is relying even more heavily on its lending margins, which is a risk if interest rates or credit quality shift. You can see the quarterly trend below:

The reality is that while the short-term growth is impressive, analysts project future annual revenue growth to slow down to around 1.6% over the next three years. So, the clear action for you is to monitor the Net Interest Margin (NIM) and credit quality in the coming quarters. If you want a deeper dive into the balance sheet and valuation, check out the full post: Breaking Down Bank7 Corp. (BSVN) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking at Bank7 Corp. (BSVN) because you want to know if their impressive run is sustainable, and the answer is yes-but you need to look past the headline net income number. The bank's profitability is fundamentally strong, driven by industry-leading operational efficiency, even as near-term net margins face some pressure.

For the trailing twelve months (TTM) ending October 2025, Bank7 Corp. has maintained an operating margin of 61.03%, demonstrating exceptional control over its core banking costs. This efficiency is a massive competitive advantage. While a bank's 'Gross Profit' is typically Net Interest Income, the reported Gross Margin of 70.6% shows the high-quality spread they maintain on their interest-earning assets. The current elevated net profit margin is estimated around 46.1%, significantly higher than many peers.

Quarterly Trends in Profitability

Looking at the 2025 quarterly results, you see a clear picture of operational strength (Pre-provision Pre-tax Earnings or PPE) that is slightly offset by other factors, like the provision for credit losses. This is a crucial distinction for a bank's health.

• Q1 2025 Net Income: $10.3 million
• Q2 2025 Net Income: $11.1 million (a 7.44% sequential increase)
• Q3 2025 Net Income: $10.8 million (a 2.35% sequential decrease)

Here's the quick math on their core operating performance (PPE), which excludes the provision for credit losses and taxes. This is the best gauge of their day-to-day effectiveness:

The trend in PPE shows consistent, albeit modest, growth throughout 2025, with a 1.29% increase from Q2 to Q3 2025, which is a sign of disciplined cost management and a resilient net interest margin. The dip in net income from Q2 to Q3, despite rising PPE, suggests a higher provision for credit losses or a tax change, not a failure in core operations.

Industry Comparison and Operational Efficiency

Bank7 Corp. is defintely a standout when comparing profitability ratios. Their net margin of approximately 46.1% is applauded by analysts for reflecting 'industry-leading efficiency.' This is a result of sustained cost efficiency and disciplined risk management, a core part of their strategy, which you can read more about in their Mission Statement, Vision, & Core Values of Bank7 Corp. (BSVN).

The market seems to acknowledge this strength, but also prices in future headwinds. The company's price-to-earnings (P/E) ratio stands at 9.9x, which is notably lower than the US banking sector average of 11.7x and the peer average of 16.7x. This lower valuation signals that the market sees a potential slow-down in growth, despite the current robust profitability. The Return on Equity (ROE) of 19.52% reported in Q3 2025 is a strong indicator of how effectively management is using shareholder capital to generate profit.

What this estimate hides, however, is the analyst consensus that profit margins are expected to narrow to around 37.0% within three years from the current 46.1%. This anticipated compression is the main risk to monitor, though the bank's strong operational discipline is expected to cushion the impact.

Finance: Track the quarterly efficiency ratio (Non-interest expense / Revenue) to confirm sustained cost management in Q4 2025.

Debt vs. Equity Structure

You're looking at Bank7 Corp. (BSVN)'s balance sheet to figure out how they fund their growth, and the answer is clear: they rely almost entirely on shareholder capital, not debt. This is a huge differentiator in the banking world. The direct takeaway is that Bank7 Corp. (BSVN) operates with virtually zero debt, giving them an exceptionally low-risk financial profile compared to most peers.

For a bank, the traditional debt-to-equity ratio (D/E) is less relevant than regulatory capital ratios, but the principle still holds. Most regional banks use a mix of debt (like subordinated notes or trust-preferred securities) and equity to boost their returns. But Bank7 Corp. (BSVN) is different. The company is reported to maintain zero debt on its balance sheet as of the third quarter of 2025, which means its D/E ratio is effectively 0.0x. This is defintely a conservative, capital-first approach.

Here's the quick math on the comparison. The average Debt-to-Equity ratio for US Regional Banks is around 0.5 as of November 2025. That means for every dollar of equity, the average peer has 50 cents of external debt. Bank7 Corp. (BSVN) has none. This is the clearest sign of a low-risk profile you can find.

• Short-term Debt: $0.00 (Zero)
• Long-term Debt: $0.00 (Zero)
• Debt-to-Equity Ratio: 0.0x (Effectively)

The real measure of a bank's capital strength is its regulatory capital ratios. These figures show how much of a cushion the bank has against unexpected losses. Bank7 Corp. (BSVN) is not just meeting the minimums; they are significantly exceeding them. As of September 30, 2025, their consolidated Tier 1 leverage ratio was 12.71%.

To put that 12.71% Tier 1 leverage ratio in context, the weighted average for US regional banks was 10.11% as of June 30, 2025. The regulatory minimum for a 'well-capitalized' community bank under the Community Bank Leverage Ratio (CBLR) framework is 9%. Bank7 Corp. (BSVN) is operating nearly three percentage points above the industry average for regional banks, which translates directly into a massive buffer against market volatility and credit losses. They are a fortress balance sheet.

This preference for equity funding over debt financing is further cemented by their recent capital management actions. In August 2025, the company announced a renewal of its stock repurchase plan. This is a move that uses excess capital to buy back shares, effectively returning value to shareholders and reducing the equity base, which is a sign of management confidence in the bank's internal capital generation and liquidity. They are so flush with capital, they are giving it back. This is a common theme in their investor profile: Exploring Bank7 Corp. (BSVN) Investor Profile: Who's Buying and Why?

The table below summarizes the core capital metrics, showing how Bank7 Corp. (BSVN) stacks up against the industry average for regional banks. It's a clear picture of a highly conservative, equity-driven funding model.

Liquidity and Solvency

You need to know if Bank7 Corp. (BSVN) can cover its short-term obligations, and the answer is yes, but you have to look past the typical corporate liquidity metrics. For a bank, the traditional Current and Quick Ratios often look low because their main assets-loans-are not considered 'current' in the same way as a retailer's inventory, and their main liabilities-deposits-are technically payable on demand. Still, for the fiscal year 2025, the reported annual Current Ratio and Quick Ratio hover around 0.18. This number is low by non-bank standards, but it simply reflects the core business model: taking in deposits (short-term liability) and funding long-term assets (loans).

A better measure of true liquidity is their highly liquid assets versus total deposits. As of the end of Q2 2025, Bank7 Corp. had $233 million in cash, which is a solid buffer against their $1.59 billion in total deposits. Plus, their regulatory capital ratios are exceptionally strong; as of September 30, 2025, their Tier 1 Leverage Ratio was 12.71%, significantly above the 'well-capitalized' minimum. That's the real safety net.

Analysis of Working Capital Trends

The trend in working capital-or more accurately for a bank, the growth in the balance sheet-shows a healthy expansion. Total assets increased from $1.8 billion at the end of Q2 2025 to $1.9 billion by the end of Q3 2025, a 3.00% sequential increase. This growth is primarily fueled by strong loan origination, which grew by 2.46% in Q3 2025 to $1.5 billion. This expansion shows management is defintely finding good lending opportunities and is able to fund them with stable deposit growth, suggesting a well-matched balance sheet.

Cash Flow Statements Overview

Reviewing the cash flow statement for the trailing twelve months (TTM) ending June 30, 2025, gives you a clear picture of where the cash is moving. Here's the quick math:

• Operating Cash Flow: Strong and positive at $46.9 million. This shows the core banking business is generating cash effectively from its operations.
• Investing Cash Flow: A significant outflow of -$143.39 million. This is a positive sign for a bank, as it primarily represents the net increase in loans, meaning they are actively putting capital to work in their core business.
• Financing Cash Flow: This is where the bank manages its capital structure. The primary outflow here is to shareholders, with cash paid for dividends amounting to -$8.7 million in Q3 2025 alone.

The overall cash flow narrative is one of a healthy, growing bank: core operations generate cash, which is then aggressively invested back into the loan portfolio, with a portion returned to shareholders via dividends. The heavy investing outflow is not a risk; it's the business model working as intended. For a deeper dive into their strategic position, you should read our full post: Breaking Down Bank7 Corp. (BSVN) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at Bank7 Corp. (BSVN) and trying to decide if the current price reflects its true value. Honestly, based on the key valuation multiples for the 2025 fiscal year, the stock appears to be trading at a slight premium compared to some peers, but still offers a compelling case for growth, especially when you factor in analyst sentiment.

The core question is: is Bank7 Corp. (BSVN) overvalued or undervalued? At a recent price of approximately $41.61, the stock is trading below its 52-week high of $50.26, which was hit in August 2025. This drop presents a potential opportunity, but you need to look beyond the price movement.

Here's the quick math on the key multiples, which are the most telling figures for a regional bank:

• Price-to-Earnings (P/E) Ratio: At approximately 9.19, Bank7 Corp. (BSVN) is trading at a reasonable P/E multiple. This is a solid number, suggesting the market isn't overpaying for the company's current earnings power, especially given the strong quarterly earnings per share (EPS) of $1.13 reported for Q3 2025.
• Price-to-Book (P/B) Ratio: The P/B multiple stands at about 1.81. For a bank, a P/B over 1.0 means the market values the company higher than its net asset value (book value), which is common for a bank with a high Return on Equity (ROE) like Bank7 Corp. (BSVN)'s 19.52%.

Since Bank7 Corp. (BSVN) is a financial institution, we typically prioritize P/E and P/B. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is less relevant here, as banks are valued on their equity and assets, not just their operational cash flow before interest and taxes.

The stock has seen some volatility over the last year. It has a 52-week range of $32.49 to $50.26, and is down roughly 19.94% year-to-date as of November 2025. This means the stock has defintely been in a downtrend, but it also signals that the current price is closer to the low end of its recent trading history, which can be an attractive entry point.

The dividend profile is another strong point for income-focused investors. Bank7 Corp. (BSVN) has an annualized dividend of $1.08 per share, resulting in a dividend yield of approximately 2.6%. The payout ratio is very sustainable at around 23.84%, meaning the company is only using a small portion of its earnings to fund the dividend, leaving plenty of capital for growth and unexpected risks.

Wall Street analysts have a favorable view, which is a good sign for near-term price momentum. The current analyst consensus rating is a Moderate Buy. The average 12-month price target is set at $54.00, which suggests a significant upside from the current price. This consensus is built on the expectation that the bank's strong capital ratios and resilient net interest margin will continue to drive performance through 2025. You should look at Exploring Bank7 Corp. (BSVN) Investor Profile: Who's Buying and Why? to see who is driving the buying.

Here is a summary of the key valuation metrics for Bank7 Corp. (BSVN) based on recent 2025 data:

The takeaway is that the stock is not a screaming bargain on a P/B basis, but the low P/E and conservative dividend payout, coupled with the analyst target, suggest it is currently undervalued relative to its future earnings potential. Your next step: check the latest loan growth figures for Q4 2025-that's the real engine here.

Risk Factors

You need to know the risks for Bank7 Corp. (BSVN) are less about immediate crisis and more about a near-term squeeze on profitability and growth. The company is defintely well-capitalized, but external market conditions and internal operational pressure are creating headwinds that will temper its impressive historical margins.

The core issue is that while Bank7 Corp. maintains industry-leading efficiency, analysts project its net profit margin will shrink from its current level of 46.1% to approximately 37.0% over the next three years. That's a significant drop, and it forces a closer look at the key operational and external risks.

Operational and External Headwinds

The most immediate financial risks for Bank7 Corp. stem from its exposure to the energy sector and a general deceleration of loan growth. Macroeconomic uncertainty has already led to a reduced loan growth forecast for the second half of 2025, now expected to be in the low-to-mid single digits. Plus, the core fee income outlook for the year was cut by about 20%, down to $6.6 million, directly tied to anticipated declines in oil and gas-related revenue. That's a clear risk map.

In terms of internal operational risks, the company saw its efficiency ratio worsen in the first quarter of 2025, indicating less operational efficiency, and elevated operational expenses remain a persistent risk. To be fair, this is a common challenge for banks trying to maintain service levels while managing costs in a tight labor market.

• Shrinking Profit Margins: Expected margin compression from 46.1% to 37.0% over three years.
• Subdued Revenue Growth: Projected annual revenue growth of just 1.6%, far below the US market benchmark of 10%.
• Credit Quality: A surge in 'Special Mention' loans in Q1 2025 raises a red flag for future credit issues.

Financial Health and Mitigation Strategies

The good news is Bank7 Corp. has strong buffers to manage these risks. Management is applauded for its disciplined risk management, which is the primary mitigation strategy against margin and credit risk. The CEO highlighted a 'properly matched balance sheet' and 'robust liquidity' as key to navigating economic uncertainties. This is important because a well-matched balance sheet can better protect net interest margin (NIM) from volatility in the rate environment.

The capital structure is a major strength. As of September 30, 2025, the consolidated capital ratios significantly exceed the minimums required for a 'well-capitalized' institution. Here's the quick math on their regulatory cushion:

Also, the company is actively managing capital to boost shareholder value, renewing its stock repurchase program in August 2025 to buy back up to 750,000 shares over two years, alongside a 12.5% dividend increase. This action signals management confidence in the stock's intrinsic value and its ability to generate excess capital, even with a slightly lower Q3 2025 net income of $10.8 million. If you want to dig into the company's long-term philosophy, look at their Mission Statement, Vision, & Core Values of Bank7 Corp. (BSVN).

Growth Opportunities

You're looking for a clear path forward for Bank7 Corp. (BSVN), and the short answer is that their growth will be a story of disciplined, organic expansion in key regional markets, not a sudden, massive surge. The bank's strength lies in its exceptional capital position and operational efficiency, which create a solid foundation for near-term growth, even if top-line revenue forecasts are modest.

The consensus among analysts points to a 2025 full-year Earnings Per Share (EPS) of approximately $4.51, with projected revenue hitting around $915.36 million. Here's the quick math: that revenue forecast implies a somewhat subdued annual growth rate of about 1.6% over the next three years, which is defintely slower than the broader US market benchmark. Still, the bank consistently beats quarterly estimates, suggesting management is good at under-promising and over-delivering.

Key Growth Drivers and Strategic Focus

Bank7 Corp.'s strategy isn't about chasing every shiny new product; it's about deep focus on a profitable niche. Their core growth driver is a commitment to serving business owners and entrepreneurs with fast, consistent lending and deposit products. They're not trying to be a national giant, but a dominant regional player.

• Focus on organic loan growth in core markets.
• Selectively open new branches in target markets.
• Pursue strategic acquisitions to boost scale.

This disciplined approach is what drives their Pre-Provision Pre-Tax Earnings (PPE), which is a crucial metric reflecting core banking profitability before accounting for loan loss provisions and taxes. The CEO has explicitly stated that their location in dynamic geographical markets-Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas-positions them for sustained growth.

Competitive Advantages and Financial Resilience

What truly sets Bank7 Corp. apart is its financial resilience and efficiency, which act as a shield against market volatility and a springboard for future expansion. They maintain what I call a fortress balance sheet. As of September 30, 2025, their total assets reached $1.9 billion, with total loans at $1.5 billion. The net interest margin (NIM) remains strong at 5.07%, indicating superior profitability from their lending activities.

The most important number for a bank's health is its capital ratio. Their Tier 1 leverage ratio stood at a robust 12.71% as of Q3 2025, significantly above the minimum required to be designated as 'well-capitalized.' This high capital level means they have a huge cushion for risk and ample capacity to fund new lending opportunities or execute acquisitions without needing to raise dilutive capital immediately.

Here is a snapshot of the 2025 financial projections and key metrics:

The company's focus on maintaining stable credit quality and cost efficiency, despite expected margin compression across the banking sector, is a key strategic advantage. For a deeper dive into the bank's long-term vision, you should review their Mission Statement, Vision, & Core Values of Bank7 Corp. (BSVN).